Insurance News: FDI insurance-Expansion in limit to provide exit options

Increase in FDI limit in insurance sector to 49% from 26% will likely provide exit  opportunities for promoters. Given the modest growth in business for life  insurance sector and weak profitability of non-life, and that insurers have  significantly high solvency margins, contribution of incremental FDI to expansion  will be limited. If all promoters decide to sell 23% stake to foreign players the  potential inflows can be around USD 3.5bn. But a realistic estimate could be much lower at USD 0.4-0.8bn. Read more